In insurance terminology, who is referred to as the "insurer"?

In insurance terminology, the term "insurer" specifically refers to the company that provides insurance coverage. The insurer is responsible for underwriting the insurance policies, assuming the risks associated with those policies, and paying out claims as stipulated in the policy agreements. This role includes evaluating risks, setting premium rates based on potential liabilities, and managing the financial aspects of insurance products.

The insurer operates under the regulations and guidelines established by insurance laws, aiming to protect policyholders from losses by offering financial compensation in the event of covered incidents. This structure is foundational to the insurance model, as it ensures that individuals and businesses can mitigate risks.

In contrast, a policyholder is an individual or entity that purchases insurance coverage; an individual who assesses risks typically refers to underwriting professionals or actuaries, and a professional representing the policyholder is often an insurance agent or broker. Understanding these roles helps clarify the dynamics between various parties involved in the insurance process.